WebMD Accused Of Hiding Ad Woes Before Stock Plunge

Law360, New York (August 3, 2011, 1:53 PM EDT) -- A proposed class of WebMD Health Corp. shareholders sued the health information services provider Tuesday in New York, accusing it of inflating its stock price by hiding advertising troubles.

According to the complaint, WebMD continued to issue rosy financial projections while hiding from investors that legal and regulatory reviews were causing sponsorship cancellations, and that advertisers with shrinking budgets were holding off on buying space on WebMD's website.

"We enter 2011 strongly positioned to benefit as biopharma and consumer products companies continue to shift their marketing...
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Case Title

In re WebMD Health Corp. Securities Litigation


Case Number

1:11-cv-05382

Court

New York Southern

Nature of Suit

Securities/Commodities

Judge

John F. Keenan

Date Filed

August 2, 2011

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